Wine Makes for a Good Investment
Wine can offer a good investment opportunity for those looking beyond stocks and bonds.
Brits looking for a different way to invest their money could enjoy good returns by buying up bottles of wine, experts say.
Wine investors can bag themselves an easily transferable asset which is exempt from capital gains tax. The auction market for wine is also thriving with many seeing around a 15 per cent return, according to wine merchants Berry Bros and Rudd.
A good wine from a good vintage can double in price by the time it fully matures but those investing in the highest quality wine from the best years stand to gain even more.
But as wine prices for individual vintages can fluctuate depending on a single critic's view then people should invest in several vintages.
Berry Bros & Rudd recommend that wine investors put at least £5,000 into their cellar - although investments can start from as little as £250.
Investors can easily buy into 'wine futures' or purchase en primeur – which means purchasing vintages after the summer harvest but collecting it after it is bottled and released for general sale.
Red Bordeaux as the safest bet for investors as it remains the most important and reliable area in the market. Regions including Burgundy and the Rhône Valley, along with Italy, Spain and California also produce top quality yields.
And once the wine has been bought, it should be stored in a Bonded warehouse where it will be tended by professional cellarers for best returns and ease of resale.
